Employment Termination Payments (ETPs)

Not available in Accountants Office

About ETPs

This is a transactional dialog which is used when there is more than one entry to be made for the details of more than one ETP received. The Calculator uses the relevant information recorded in these transactions to calculate the ETP offset, if any.

The ELS ETP schedules (PY) may only be lodged via PLS. They may not be lodged as a facsimile schedule. The PY will only be lodged via PLS where there is more than one ETP transaction.

Completing the ETP Transaction dialog

ETP Code

Select or key the code as shown on the ETP Payment summary.

Type and Age Details (Check the relevant boxes)

Tick these checkboxes as appropriate:

Deceased’s dependant: Tick this box to indicate whether the beneficiary was a dependent of the deceased at the time of death or payment.

Over 55: Tick this box if the taxpayer is over 55.

Deceased Member of Aust Forces died in line of duty: If the deceased was a member of the Australian Defence Forces or Australian Police Force or Protective Services who died in the line of duty, then the beneficiary of the payment (the taxpayer) is considered to be an eligible dependant for tax purposes.

Prev used amounts from same termination

If your client has received a payment in the previous financial year that related to the same employment termination (same employer) or receives two ETPs for ceasing employment in the current year and, added together, they exceed the ETP low rate cap of the current year, then both payments count towards the cap.

OR

If a Death benefit ETP payment for the same Deceased person was received in the previous year or two have been received in the same year - whether or not they relate to the same deceased person - and together they exceed the Death benefits cap of the current year, then both payments count towards the cap.

Death Benefit ETP to non-dependant: If the payment is Death Benefit ETP and your client has received a payment the previous financial year and has now received another, then enter the amount of that previous payment.

Taxable Component

Tax Withheld: Enter the amount exactly as it is printed on the payment advice.

Amount: Enter the amount exactly as it is printed on the payment advice.

Excess over the cap fields: These fields are required for the calculation of Tax on Taxable Income where the client has received a payment that is above the ETP cap for the current year and the Untaxed Plan cap of the current year.

Where there is a taxed element in excess of the cap in the case of either an Employment termination or an Employment termination Death Benefit, Tax will default that amount to one or both of these fields.

Excess over the Low rate cap: If applicable, this amount will be calculated by Tax.

Excess over the death benefit cap: If applicable, this amount will be calculated by Tax.